J Sainsbury PLC’s third quarter trading update (LSE:SBRY), should provide a better idea of how the grocers did this Christmas. They came a day ahead larger rival Tesco.
According to industry data, the grocer is the first to report on Christmas after what appears to have been a strong one.
Kantar research found that Christmas spending exceeded £12bn during the four weeks leading up to 25 December. This was the first time in four weeks that it has exceeded £12bn.
Margin is the key metric you should be paying attention to for next week, as much of the increase in spending can be attributed price increases.
Sainsbury’s, however, has remained as cost-conscious as possible. Hargreaves Lansdown analysts believe that the grocer is the only one to increase its volume share.
This approach may be competitive, but it does not impact profits. Profits were down 8% during the first half.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.